Regulatory FrameworkQuestion 391 of 398
The Central Registration Depository (CRD) system, operated by FINRA, primarily serves to:
a.Clear and settle securities trades between firms
b.Store registration, employment, and disciplinary information about firms and associated persons
c.Set margin requirements for customer accounts
d.Approve securities for listing on exchanges
Explanation
The CRD is the central licensing and registration system for the U.S. securities industry, maintained by FINRA. It houses information from Forms BD, U4, and U5, including employment history and disciplinary records. Much of this information is made available to the public through BrokerCheck.
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